Earnings Reports for July 17

Bank of America in Line With Estimates

Bank of America Corp. met Wall Street’s expectations with second-quarter earnings of $1.23 per share, up 7 percent over its operating earnings of $1.15 per share a year ago.

With more than 4,500 branches in 21 states, Bank of America serves more than 30 million households and 2 million businesses.

Net income for the nation’s second-largest bank was $2.06 billion, essentially unchanged from operating earnings a year earlier. Net income in the same quarter last year was $1.92 billion, or $1.07 per share, including a $145 million after-tax merger-related charge.

Consumer and Commercial Banking, which serves individuals and businesses with annual sales of up to $500 million, earned $1.25 billion and had a return on equity of 21 percent. This segment represented 61 percent of the company’s net income.

Those gains were offset by slower capital markets activity and depreciation in venture capital investments due to lower stock prices.

The return on common equity in the latest quarter was 17.63 percent, basically unchanged from a year earlier, and the return on assets was 1.23 percent.

Mutual fund assets rose by $12 billion, or 14 percent, during the first six months of the year. In addition, the company agreed to acquire the remaining 50 percent of Marsico Capital Management LLC, an investment management firm which manages more than $15 billion in assets.

Card revenue rose 13 percent and consumer investment and brokerage revenue grew 16 percent. Trading revenue was up 19 percent and corporate banking service revenue rose 9 percent.

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Corning Sees Earnings Soar

Corning Inc. reported second-quarter earnings were up 80 percent from a year earlier, surpassing Wall Street expectations.

The company said growth was driven by strong sales of fiber optical cable and flat-panel display glass.

The company said second-quarter pro forma earnings reached $271.1 million, or 94 cents a share, compared with $136.5 million, or 52 cents per share, in the same quarter of 1999.

Wall Street had expected Corning to earn 80 cents a share, according to research firm First Call/Thomson Financial.

The pro forma net income excludes amortization of purchased intangibles and goodwill, in-process research and development, one-time acquisition costs, discontinued operations and other nonrecurring items.

The company boosted its outlook for full-year pro forma earnings to between $3.15 and $3.25 a share, about 60 percent above the year-earlier $2 a share. Analysts have forecast earnings of $2.92 a share.

“This revised outlook reflects our very strong performance this quarter and confidence for continued unprecedented demand for Corning’s market-leading products through year-end,” said Roger Ackerman, Corning’s chairman and chief executive officer. BACK TO TOP

Profits Improve at Delphi Automotive

Delphi Automotive Systems said that its second quarter earnings totaled $424 million, a 7.6 percent increase over last year’s results.

The earnings of 75 cents per share matched Wall Street expectations, according to a survey by First Call/Thomson Financial. In the second quarter of 1999, Delphi earned $394 million or 70 cents a share.

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